Can The Oil Price Rally Continue?

Brent crude prices consolidated recent gains at around $70 a barrel on Tuesday (16 Jan 2018), a level not seen since 2014ís dramatic oil market slump.

Prices have been driven up by production curbs in OPEC nations and Russia, as well by strong demand thanks to healthy economic growth. Also oil has been pushed higher by an effort led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia to withhold production since January last year. The cuts are set to last through 2018.

The restraint has coincided with healthy oil demand, pushing up crude by almost 15% since early December 2017. A major factor holding back crude prices in 2017, the surge in U.S. production, has stalled at least temporarily as icy winter weather in North America has shut down some facilities.

It expected Brent to rise to around $75 per barrel by the third quarter of 2018.